Before the Open (Jun 24)

Posted on by Jason Leavitt

Good morning. Happy Tuesday. It’s like a national holiday here in Costa Rica as the country gets ready for another World Cup game.
The Asian/Pacific markets did well. India and Korea led the way followed by China, Hong Kong, Indonesia and Malaysia. Europe is currently mixed. Prague and Greece are down more than 1%; Russia is up 1.5%. Futures here in the States point towards a flat open for the cash market.

Quick write-up today because my internet is down.
A quick review of a couple divergent charts posted over the weekend…
The S&P hit a new high while the 10-day of the NYSE AD line failed to match the movement…

Same thing for the S&P vs. the 10-day of the NYSE AD volume line…

And both the NYSE new highs and NASDAQ new highs also put in lower highs…


Long term I like the market. Short term (next two weeks) I’m looking for a stall or minor drop. More after the open.
Stock headlines from barchart.com…
Walgreen (WAG -1.09%) reported Q3 EPS of 91 cents, below consensus of 94 cents.
IDEXX (IDXX +0.52%) was upgraded to ‘Buy’ from ‘Hold’ at Canaccord.
O’Reilly Automotive (ORLY -0.77%) was initiated with an ‘Overweight’ at Morgan Stanley with a price target of $175.
Dr Pepper Snapple (DPS -1.18%) was downgraded to ‘Neutral’ from ‘Buy’ at Citigroup.
ITG (ITG -3.05%) was downgraded to ‘Neutral’ from ‘Overweight’ at JPMorgan Chase.
National Retail Properties (NNN -0.85%) was downgraded to ‘Neutral’ from ‘Buy’ at BofA/Merrill Lynch.
Wells Fargo downgraded IntercontinentalExchange (ICE +1.71%) to ‘Market Perform’ from ‘Outperform.’
Aviva (AV -0.23%) was downgraded to ‘Neutral’ from ‘Buy’ at UBS.
Cray (CRAY -0.39%) announced that it has been awarded a $54 million contract to provide the Korea Meteorological Administration with supercomputers.
Dean Foods (DF -0.17%) fell over 7% in after-hours trading after Dow Jones reported that the company received subpoenas from federal authorities in an insider trading probe involving activist investor Carl Icahn.
SAB Capital Advisors reported a 9.4% passive stake in Famous Dave’s (DAVE -2.80%) .
Priceline reported a 5.1% stake in OpenTable (OPEN +0.35%) .
Micron (MU -1.85%) reported Q3 EPS of 79 cents, well above consensus of 70 cents.
Earnings and Economic Numbers from seekingalpha.com…
Today’s economic calendar:
7:45 ICSC Retail Store Sales
8:05 Fed’s Plosser: Monetary Policy and Economic Outlook
8:55 Redbook Chain Store Sales
9:00 FHFA House Price Index
9:00 S&P Case-Shiller Home Price Index
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
10:00 Richmond Fed Mfg.
10:00 New Home Sales
1:00 PM Results of $30B, 2-Year Note Auction
Notable earnings before today’s open: CCL, WAG
Notable earnings after today’s close: APOG
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (Jun 24)”

  2. Just now getting to post for today. Will post what I prepared at 9 am, then add an afternoon update below it.
    Es De, thanks for your kind words. Took Monday off, kind of a yawner. Market had to retrace last week’s gains.
    Today, resistance from 1961-1963. If we can’t get thru 1963, target below is 1951.50.
    Overnight, they’ve bounced it at a support level: 1955 which extends lower to 1952. As long as that holds, target is 1969+.
    Futures were negative all night, low of -6.
    AFTERNOON UPDATE
    We went straight up and broke the resistance in a big way this morning. However, we came straight back down to where we started. Technically, we shouldn’t have gone below 1960-61.
    Now testing the support level at 1955 to 1952. Keep an eye on that level in the last 2.5 hours today.

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